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Welcome to bolsaTrading. A website for those who want to be informed about world financial markets.

Our readers could find monthly recommendations of international shares by means of charts as well as fundamentals analysis. Investors buy and/or sell at their own risk. bolsaTrading has zero connection to Wall Street.

4 Reasons To Buy OncoSec Medical

By Jorge Aura

OncoSec Medical (OTCBB: ONCS) develops novel cancer therapeutic products. Its products combine proprietary electroporation delivery technology with a chemotherapeutic or novel DNA-based immunotherapeutics, known as OncoSec Medical System (OMS), which is based on both immunotherapy (ImmunoPulse) and chemotherapy (NeoPulse) agents. According to the company website, Immunopulse and Neopulse are defined as:  
ImmunoPulse delivers instructions to the cell (DNA IL-12) to produce a protein that activates an immune response against cancer cells.
NeoPulse delivers bleomycin, an approved anti-cancer drug that specifically targets and destroys cancer cells.
The most surprising thing is its action method on the two treatments. In the next image, which was provided by the company, you could see how OMS system works.



- Tissue: The generator creates a pulsed electric field that temporarily increases the porosity of cell membranes within the treatment field.
- Poration: The hand-held applicator supplies a series of short-duration electrical pulses of specific voltage through a series of needles.
- Uptake:  Together, the action of the generator and applicator creates a rotating array of pulses     that uniformly subject the targeted cell membranes to electroporation.
Source: Oncosec Medical

Pipeline Overview:

 Source: Oncosec Medical 

Fundamental Basic Review

Oncosec Medical has a market cap of $27.11 million. Its trailing P/E is incalculable, and its forward P/E is just incalculable as the majority of pharmaceutical companies of small-capitalization. It has a total cash position on its balance sheet of just $8.98 million, and its total debt is at $2.68MM. In Oncosec Medical's last quarter, we can see that its operating expenses reached $1.61 million. Based on the operating expenses and the company's cash deducting the current debt from them, we can think that the company would have enough cash for the next four financial quarters or second quarter of 2014.

I find at least four reasons to buy the stock currently:

1.  Interim Data for Phase II Study of ImmunoPulse in Metastatic Melanoma Patients
On March 25, 2013 Oncosec Medical announced positive, durable response results in an update on interim data from its Phase II metastatic melanoma trial. This data was presented at the HemOnc Today Melanoma and Cutaneous Malignancies Conference. This is one of the most important conferences worldwide on studies of melanoma and Cutaneous Malignancies

The data presented were impressive. ImmunoPulse demonstrated a partial or complete response.  ImmunoPulse treated patients showed a 68% and 45% percent of treated lesions demonstrated a durable response at three and six months, respectively.  

To help our readers get an idea of the importance of these results, Amgen (Nasdaq: AMGN) is developing a treatment for melanoma that is currently in phase III trials. The first results provided by the company showed 16% of trial patients on the engineered virus had a durable response compared with 2% of those on the control therapy GM-CSF. 

We hope that Oncosec shows more data from this study at the next ASCO meeting in June, 2013.

2. Analysts' price target: $1.5

  







- On June 21, 2012 without being approved the European designation CE for Neopulse, Roth Capital initiated coverage on OncoSec Medical with a Buy. The price target market was $1.00 per share.

- On May 26, 2011 without being approved the European designation CE for Neopulse and without 3 important phases II treatment of melanoma, carcinoma and lymphoma, Vista Partners initiated coverage on OncoSec Medical with a twelve month target price of $2.90.

Mr. Silver, analyst of Vista Partners said:
"OncoSec's ElectroOncology clinical development pipeline is comprised of cancer treatments intended to address therapeutic needs in multi-billion dollar markets. The company's ElectroChemotherapy has shown in clinical trials to date that it selectively destroys cancer cells while leaving healthy tissue intact, dramatically improving patient quality of life. This provides OncoSec with a considerable potential competitive advantage compared to existing treatment options. OncoSec's ElectroImmunotherapy could prove to be a powerful new approach to treat local and metastatic tumors."
3. Institutional ownership: 14%

- Sabby Capital LLC own 7.32MM shares or 6.24% of total shares.
- Downsview Capital Inc own 5.02MM shares or 4.29% of total shares.
- Ayer Capital Management LP own 4.41MM shares or 3.76% of total shares.
Source: CNN Money

In the OTCBB are few companies with many institutional investors. Oncosec Medical can boast a very high percentage and that will possibly be increased in the coming months with good results in clinical trials.

4. Ten Major Catalysts in 2013

- 2013 — April 15, 2013 Complete enrolment for Phase II melanoma program.
- July 15, 2013 — July 31, 2013 Present interim response data on Phase II melanoma program.
- July 15, 2013 — July 31, 2013 Present long-term PFS data from Phase I melanoma program.
- July 15, 2013 Present interim response data on Phase II Merkel cell carcinoma program.
- July 31, 2013 Complete enrolment for Phase II Merkel cell carcinoma program.
- August 31, 2013 End of Phase II Meeting with FDA for melanoma program.
- September 2013 Present interim data on cutaneous T-cell lymphoma program.
- October 15, 2013 Present final data for Phase II melanoma program.
- October 31, 2013 Present final data for Phase II Merkel cell carcinoma program.
- December 31, 2013 Launch Phase IIB melanoma program.

Source: OncoSec Medical

The next catalysts in OncoSec Medical surely will catapult the stock price.

Conclusion:

OncoSec Medical is a  tremendously undervalued company. It has a capitalization of $27MM and a cash flow of $9MM. Besides, it is carrying out several major studies. Immunopulse and Neopulse treatments can provide it with an income of $500MM annually minimum. This enterprise should have a minimum capitalization of $250MM or $2.5 per share.

*Pipeline overview data sourced from OncoSec Medical, all other data sourced from Nasdaq.com, CNN Money as well as the web of the previously mentioned company.

Disclosure: Jorge Aura owns shares of OncoSec Medical  Jorge Aura wrote this article himself, and it expresses his own opinions. He is not receiving compensation for it.  Jorge Aura has no business relationship with any company whose stock is mentioned in this article.

Biopharma stocks: 3 Small-caps that have bottomed out in November

By Jorge Aura

All investors know the risks of biotechnology companies. The strong volatility of these companies makes their prices fluctuate in excess. This sector has the peculiarity that offers a high risk but with a possible high gain. Identify pharmaceutical companies that have bottomed out or that are undervalued can be a good investment strategy for medium-term and short-term. In the following table will be able to see the readers, 3 companies which have greatly reduced their quoted prices since on January 3, 2012.

Company January 3, 2012   52-wk low on November 2012          %
Dynavax Technologies Corporation $3.28   $2.22 -32.32%
Horizon Pharma $4.20   $2.03 -51
Somaxon Pharmaceuticals $3.68   $1.29 -64.95%

As you have seen in the upper table these companies have been hit hard during November, 2012. To determine if these companies are undervalued I have made a fundamental analysis of each company.

Dynavax Technologies Corporation (NASDAQ: DVAX) is a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases. It develops product candidates based on the use of immunostimulatory sequences and immunoregulatory sequences.

Dynavax's lead product candidate is Heplisav. This product candidate is in Phase III to treat adult hepatitis B. Heplisav is an experimental vaccine. On November 15, 2012 Dynavax announced that FDA Vaccines and Related Biological Products Advisory Committee voted thirteen to one that Heplisav data adequately demonstrated immunogenicity. But the same Committee voted eight to five with one abstention that there was insufficient data to adequately support the safety of Heplisav.

Dynavax has a market cap of $489.66 million. Its trailing P/E is incalculable, and its forward P/E is just incalculable as the majority of pharmaceutical companies of small-capitalization. Dynavax' estimated growth rate for this year is 44.10%. It has a total cash position on its balance sheet of just $148.28 Million. The company announced a revenue on nine months ended September 30 of $7.90MM.


DVAX data by YCharts

This stock plunged from its May high of $5.34 to a recent low in November of $2.22. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $2.91 a share. Look for volume that's tracking in close to or above its three-month average action of 6,547,844 shares.

Horizon Pharma (NASDAQ: HZNP) is a biopharmaceutical company, through its subsidiaries, develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. On Dec. 3, 2012 The company announced that its product called Rayos (prednisone) delayed release tablets are now available to U.S. physicians to treat a broad range of diseases, including rheumatoid arthritis, polymyalgia rheumatica, psoriatic arthritis, ankylosing spondylitis, asthma and chronic obstructive pulmonary disease.

Horizon Pharma has a market cap of $141.04 million. Its trailing P/E is incalculable and its forward P/E is just incalculable as the majority of pharmaceutical companies of small-capitalization. Horizon's estimated growth rate for this year is -788.84%. It has a total cash position on its balance sheet of just $121.33 Million. The company announced a revenue on nine months ended September 30 of $12.88 Million.


HZNP data by YCharts

This stock plunged from its July high of $8.72 to a recent low in November of $2.03. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $2.52 a share. Look for volume that's tracking in close to or above its three-month average action of 933,422 shares.

Somaxon Pharmaceuticals (NASDAQ: SOMX) is a specialty pharmaceutical company that engages in the licensing, development, and commercialization of proprietary branded products and late-stage product candidates for the treatment of diseases and disorders in the fields of psychiatry and neurology.

Somaxon has a market cap of $10.63 Million. Its trailing P/E is incalculable and its forward P/E is just incalculable as the majority of pharmaceutical companies of small-capitalization. Somaxon's estimated growth rate for this year is -10.24%. It has a total cash position on its balance sheet of just $8.5 Million. The company announced a revenue on nine months ended September 30 of $8.22 Million.


SOMX data by YCharts

This stock plunged from its January high of $6.40 to a recent low in November of $1.29. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $1.56 a share. Look for volume that's tracking in close to or above its three-month average action of 59,003 shares.

Disclosure: Jorge Aura has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Jorge Aura wrote this article himself, and it expresses his own opinions. He is not receiving compensation for it.  Jorge Aura has no business relationship with any company whose stock is mentioned in this article.

Interview With Frederic Scheer, CEO Of Cereplast

By Jorge Aura


Cereplast Inc (NASDAQ: CERP) is engaged in the development and commercialize of compostable, renewable, ecologically substitutes for petroleum-based plastics. The company produces and markets’ bio-plastics. The company was founded in 2001. Cereplast product portfolio currently consists of two top quality range of products:

- Cereplast compostable resins are made of renewable resources and are ecologically sound substitutes for fossil fuel-based plastics, replacing nearly 100% of the petroleum-based additives used in traditional plastics.
 - Cereplast sustainable resins replace up to 90% of the petroleum content used in traditional plastics.

The company acquired a production plant in Italy in October 2011. Cereplast Inc will benefit from the new laws of sustainability of plastic bags.

I contacted Cereplast CEO, Frederic Scheer, before taking the decision to invest in this company as well as to help us gain a better understanding of the company's plans and future prospects and I have had the honor of interviewing him.

[JA] First of all, I would like to thank you for this interview. Please, tell me the start of Cereplast and its long-term objectives.

[CEO] Cereplast was incorporated in September 2001 and the scope was to create a bioplastic resin manufacturer able to offer bioplastic a substitute to traditional polyolefins but made with biobased content instead of petroleum. We have experienced significant interest from a global perspective from companies seeking to market their environmental awareness, comply with new legislative initiatives which mandate the use of bioplastics and/or reduce their carbon footprint.

[JA] On June 2012, Cereplast announced it has reached a distribution agreement with Albis Plastic GMBH. How is the commercial relationship with this company developing?

[CEO] Cereplast entered into a distribution agreement with Albis GmbH, a large European distributor. We are very pleased with our initial development work with Albis and we are excited about future prospects being generated by their team. We executed our initial shipment of material and we are hopeful to report significant developments in the weeks to come.

[JA] In August, you opened a new office in India. How are your businesses evolving in India?

[CEO] Our Indian market development efforts are the most exciting opportunity in our pipeline. India has over 1.6 billion consumers in the entire subcontinent, who are extremely receptive to alternative technology cleaning up the environment. In our office in Hyderabad, south India we have organized tens of technical tests that are supported by our local Engineer who was trained in the United States. We announced this week the first product qualified to be commercialized in the Indian market and this was done in less than 3 months, a very fast sales cycle. We are expecting more announcements to come in the next few weeks and we believe that ultimately India will become a large part of our business. India is still enjoying a 6% annual growth rate and the prospects are excellent.

[JA] Congratulations for your recent nomination for Materialica's 2012 awards. What does this nomination mean to the company?

[CEO] The Materialica nomination is just another testimony that Cereplast resins are very performing and the new trend of plastic. We believe our cutting edge technology is important to the new world of plastic. Cereplast has always created trends and we continue. For instance, Cereplast invented the concept of "hybrid" resins. Today several companies are imitating us, but clearly we have an advantage. We believe that ultimately we will change the world but clearly it is a long and rocky road and it requires perseverance and tenacity. We know that we will succeed.

[JA] A.R.M.Y. Group is a partner in South Asian markets. How many annual sales can this partner provide you?

[CEO] This is a difficult question to answer; however, the addressable market in India is very significant. I believe that in the next five years, the bioplastic resins business will grow to over $250 Million. We are one of the first companies to introduce bioplastic resins in India so I am hopeful that A.R.M.Y. will be able to exploit this competitive advantage to Cereplast.

[JA] Are you planning to release any new range of products?

[CEO] R&D is the center of our success. We are working on our new technological platform for 2013-2015. We will announce a few new offerings in our resins. We are concentrating on a fewer applications, but with resins with improved performance and offers a significant economic advantage to our end users. Our new resins will be both in our Compostables® family and our Sustainables Biopolyolefins®. We are quite excited about these resins, which could become a game changer for Cereplast.

[JA] In 2011, the company ended the year with 20MM sales. Next, a constant decrease on sales is shown in your last financial reports. What is the main reason of this decrease on sales?

[CEO] 2012 is a tough year for the world economy and is a tough year for Cereplast. As you know, over 90% of our sales were made in Europe in 2011. Unfortunately, Europe entered into a recession and several of our large clients became financially challenged, leaving us with large amounts of unpaid receivables and forcing us to dedicate a lot of time and energy to recovery. This situation forced us to restructure our selling policy and we now make sales only to companies that pay upfront or open a Letter of Credit. Implementing this policy was necessary, but eliminated several small and medium sized companies and restrained our sales. In addition, legislation in Italy that was supposed to be implemented in 2011/2012 was delayed by state authorities and the demand on compostable material decreased. The combination of all of the above explained the decrease in sales we experienced. We needed to regroup and re-center our sales on new areas of growth and this is what we have done with our Indian operations. Now clearly it takes time to build up sales cycle but we are quite optimistic on the outcome for 2013.

[JA] Cereplast Inc. shares are quoted below $1 per share. What kind of measures are you going to adopt so as to meet NASDAQ market's requirements?

[CEO] We are working with the various agencies to regain compliance and we are hopeful that the current depression in our stock value will change very shortly. The fundamentals of our Company are still very good and we just need to execute on our new direction to see our stock regain the necessary levels. We have taken a proactive attitude and we are exploring options to recapitalize the company and resolve the liquidity burden through sales in India and we intend to embark in a very active investor relations campaign to reach out to our shareholders to rebuild confidence and regain market capitalization.

[JA] Is there any multinational interested in buying Cereplast?

[CEO] At this stage we are working with several large conglomerates but primarily to design specific resins. We have not entered into any M&A activity. We are open to any opportunity but believe that it would make more sense as soon as we have regained a position of strength.

Disclosure: Jorge Aura has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Jorge Aura wrote this article himself, and it expresses his own opinions. He is not receiving compensation for it.  Jorge Aura has no business relationship with any company whose stock is mentioned in this article.

3 Dividend Stocks That Insiders Bought Last Week

A good investment strategy can be buying shares that the insiders have just bought recently. However, a better option could be that these companies offer a dividend to its investors. The insider trading is produced by executives and directors who have the most up-to-date information on their companies' prospects. Intimately acquainted with cyclical trends, order flow, supply and production bottlenecks, costs and other key ingredients of business success, these insiders are way ahead of analysts and portfolio managers, not to mention individual investors. In the next chart, we can see the influence of the insiders in the prices of the companies and the variations in their quotes.

(click to enlarge)
(Source)

Insiders' purchases may cause an increase in the prices of shares as you have seen in the top chart. So, in this article, I will write about three dividend stocks that insiders bought last week and deserve to be considered.

National American University Holdings Inc (NAUH)

This company reported a dividend of $0.16 or the equivalent of a 3.90%. Insiders have started to snap up shares in National American University Holdings. This company engages in the ownership and operation of National American University (NAU) that provides post-secondary education services primarily for working adults and other non-traditional students in the United States.

National American University has a market cap of $101.53 million and an enterprise value of $84.20 million. Its trailing P/E is 20.89, and its forward P/E is just 8.82. National American University's estimated growth rate for this year is -50.45. It has a total cash position on its balance sheet of just $27.83 million, and its total debt is at $10.49 million.

Ronald L. Shape, CEO of National American University, has just bought 2,000 shares, or $8,200 worth of stock, at $4.2 per share.


From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its January high of $8.8 to a recent low in May of $3.48. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $4.06 a share. Look for volume that's tracking in close to or above its three-month average action of 25,895 shares.

Valhi Inc (VHI)

Valhi Inc reported a dividend of $0.20 or the equivalent of a 1.60%. Insiders have started to snap up shares in Valhi Inc. The Company operates in the chemicals, component products, and waste management businesses. The company'’s chemicals segment produces and markets titanium dioxide pigment, a white inorganic pigment used to impart whiteness, brightness, opacity, and durability for applications, such as coatings, plastics, paper, inks, food, and cosmetics.

Valhi has a market cap of $4.07 Billion and an enterprise value of $5.49 Billion. This stock trades at a cheap valuation. Its trailing P/E is 15.78, and its forward P/E is just 23.51. Valhi's estimated growth rate for this year is 352.42%. It has a total cash position on its balance sheet of just $104 million, and its total debt is at $863.80 million.

Harold C. Simmons, Chairman of the Board, has just bought 4,000 shares, or $48,800 worth of stock, at $12.2 per share.

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock plunged from its December, 2011 high of $21.69 to a recent low in July of $10.67. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $12.36 a share. Look for volume that's tracking in close to or above its three-month average action of 26,655 shares.

Bank of South Carolina Corporation (BKSC)

Bank of South Carolina Corporation reported a dividend of $0.44 or the equivalent of a 3.70%. Insiders have started to snap up shares in Bank of South Carolina Corporation. This bank operates as the holding company for The Bank of South Carolina that provides commercial banking products and services to individuals, and small and medium-sized businesses in South Carolina.

Bank of SC has a market cap of $52.91 million and an enterprise value of $16.42 million. Its trailing P/E is 14.87, and its forward P/E is just incalculable. Bank of South Carolina's estimated growth rate for this year is 1.98%. It has a total cash position on its balance sheet of just $36.49 million, and its total debt is at $0.

Sheryl G. Sharry, CFO of Bank of South Carolina, has just bought 2,000 shares, or $22,900 worth of stock, at $11.45 per share. 


From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock plunged from its July high of $12.50 to a recent low in October of $10.85. If you are bullish on this stock, I would look to be a buyer on the next high-volume move above some near-term overhead resistance at $11.9 a share. Look for volume that's tracking in close to or above its three-month average action of 2,520 shares.

*Chart data sourced from finviz.com, all other data sourced from yahoo.com as well as the webs of the previously mentioned companies.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it . I have no business relationship with any company whose stock is mentioned in this article.